News from the Wire

FPC, Finzly publish essential guide for financial institutions

Tuesday, July 30, 2024 — 12:43:07 (EDT)

July 30, 2024 – The U.S. Faster Payments Council (FPC), a membership organization devoted to advancing safe, easy-to-use faster payments in the United States, and Finzly, Inc., a leader in innovative payment and financial solutions, today announced the release of a collaborative white paper titled, “From Potential to Profit: Five Ways Financial Institutions Can Break Barriers to Benefit from Instant Payments.” This new paper provides actionable insights for financial institutions (FIs) to overcome challenges and fully leverage the opportunities presented by instant payments.

The white paper is based on a comprehensive survey conducted in May 2024, in which FIs across the industry shared their experiences and obstacles in adopting instant payments. The results highlight key barriers such as legacy systems, fraud mitigation, and implementation costs. By addressing these issues, the white paper serves as a practical guide for FIs aiming to capitalize on the growing demand for instant payments.

“Instant payments are the lynchpin of modern payments, responding to market demands and opening up new revenue opportunities for FIs," said Booshan Rengachari, Founder and CEO, Finzly. "This white paper, born from our joint research with the FPC, aims to help FIs break barriers and realize the full potential of instant payments. With a strong partner, FIs can chart a clear path to profitability and meet the evolving needs of their customers.”

“We’ve reached a crossroads with faster payments becoming table stakes for businesses and consumers alike. Despite significant growth in adoption, many FIs face challenges in fully leveraging instant payments," said FPC Executive Director Reed Luhtanen. "This collaborative paper offers actionable steps to overcome these hurdles, sparking ideas for FIs to implement and support faster payments within their organizations. Our goal is to advance faster payments in the United States, ensuring FIs can meet their customers’ needs and secure their place in the future of payments.”

The white paper underscores the importance of instant payments in the current financial landscape and provides a strategic roadmap for FIs to navigate this transformation. It discusses the technical and operational steps necessary to implement instant payments effectively, along with the importance of partnering with technology providers to enhance capability and reduce risks.

Survey Highlights:

Revenue Potential: 77.6% of FIs point to corporates as the biggest source of instant payments revenue potential.

Business Use Cases: Top use cases include loan disbursements, invoice payments, loan repayments, instant funding of newly opened accounts, payroll processing, and utility bill payments.

Challenges: 73.4% of FIs cite moderate to severe challenges with legacy systems in handling instant payments.

This white paper is a must-read for FIs looking to navigate the complexities of instant payments and unlock new revenue streams. The full paper is available for download on the Faster Payments Council and Finzly websites.

Contacts:

Elizabeth Grice U.S. Faster Payments Council egrice@fasterpaymentscouncil.org 720-987-9491

Cognito Media finzly@cognitomedia.com 917-660-8527

About the U.S. Faster Payments Council (FPC)

The FPC is an industry-led membership organization whose vision is a world-class payment system where Americans can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability. By design, the FPC encourages a diverse range of perspectives and is open to all stakeholders in the U.S. payment system. Guided by principles of fairness, inclusiveness, flexibility and transparency, the FPC uses collaborative, problem-solving approaches to resolve the issues that are inhibiting broad faster payments adoption in this country. For more information, please visit FasterPaymentsCouncil.org.

About Finzly

Finzly empowers banks, fintechs, and businesses to seamlessly offer and access financial services in an open, connected, embedded, and real-time ecosystem. At the core of this infrastructure is Finzly BankOS, a modern, cloud-based, API-enabled operating system that serves as a parallel payment processing platform to a bank's core. Finzly offers a wide range of turnkey banking solutions, including a multi-rail payment for traditional payments on ACH and wires, instant payments on FedNow and RTP, foreign exchange, trade finance, virtual accounts, compliance, and commercial banking digital experiences. Learn more about Finzly's game-changing solutions by visiting www.finzly.com. ###

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Source: Company press release.